Barclays stock dives for seventh day in row

Barclays Plc, the UK bank that turned down government funding last year, declined for a seventh straight day in London trading on speculation that it may be forced to take more writedowns and be nationalized.

Barclays fell as much as 35 percent, the biggest drop in at least two decades, and was down 20 percent at 58.3 pence as of 12:30 pm. The shares have lost 62 percent this month, valuing the company at 4.9 billion pounds ($6.5 billion). London-based Lloyds Banking Group Plc fell as much as 26 percent today.

"There is genuine fear from shareholders, who see a real risk of nationalization," said Simon Maughan, an analyst at MF Global Securities Ltd who has a "sell" rating on Barclays.